Uponor - Company Announcement

Weak European demand and raw material price volatility drive operating profit guidance change for 2015

Uponor Corporation     Stock exchange release     30 September 2015   8:00 EET

Weak European demand and raw material price volatility drive operating profit
guidance change for 2015 

Prolonged weak demand in the European building and civil engineering markets
has impacted on performance in Building Solutions - Europe and Uponor Infra
more severely than expected, as a result of which Uponor estimates that its
full year 2015 operating profit will not improve from 2014. In February, Uponor
issued guidance suggesting that the Group's net sales and operating profit
(excluding any non-recurring items) were expected to improve from 2014. 

According to current estimates, based on organic growth, net sales for 2015 are
expected to exceed those of the prior year while operating profit, excluding
any non-recurring items, remains somewhat below that of 2014. 

In addition to weak demand in Europe, performance in the third and fourth
quarter is impacted by a temporary gross margin erosion coming from sales of
inventories made prior to the recent decline in resin prices. 

In July, Uponor launched a streamlining programme in its Building Solutions -
Europe segment in order to adjust operations to the slack demand environment in
Europe. This programme is set to bring annual savings of around €3 million. It
is estimated that these initiatives will incur a total of €4-€5 million in
non-recurring costs, most of which will be booked during 2015. 

Uponor has already launched initiatives in Sweden and the UK targeting a
reduction of circa 70 man years. Measures are also being prepared for the
softening German market. In total, the measures are expected to account for
around 100 man years of work in Building Solutions - Europe. Further details
will be communicated when the plans are ready. 

The North American market has remained strong and Uponor's building solutions
business is developing as expected. In addition, the manufacturing expansion in
Apple Valley, Minnesota, which began in the early spring, is progressing
according to plan. 


For further information, please contact:

Jyri Luomakoski, President and CEO, tel. +358 20 129 2824
Riitta Palomäki, CFO, tel. +358 20 129 2822



Tarmo Anttila
Vice President, Communications
Tel. +358 20 129 2852


DISTRIBUTION:
NASDAQ Helsinki
Media
www.uponor.com

Uponor is a leading international provider of plumbing and indoor climate
solutions for residential and commercial building markets across Europe and
North America. In Northern Europe, Uponor is also a prominent supplier of
infrastructure pipe systems. The Group employs approx. 3,800 persons, in 30
countries. In 2014, Uponor's net sales exceeded €1 billion. Uponor Corporation
is listed on NASDAQ Helsinki in Finland. www.uponor.com